First, the share value determines the amount of contributions for maintenance that an owner has to pay to the management corporation of the estate for maintaining the common areas in the development. Second, the share value of a strata lot determines the voting right of a unit owner. The higher the share value an owner has, the more voting rights he or she has. Third, the share value determines the share that an owner has in the common property, which is jointly owned by all the owners in a development.
Who determines share value?
To determine the share value of each unit, the developer submits a proposal to the Commissioner of Buildings (COB) for acceptance. This proposal shows the share value that has been allocated by the developer to all the units in the development. A developer engages a professional surveyor to carry out the task of allocating the share value. The share value of each unit must be accepted by COB before sale of property
How the share value is determined?
The COB has a set of guidelines to assist developers to determine share value allotment. The general principle in allocating share value is based on perceived usage of common facilities. A unit that uses more of the common facilities is allotted with a higher share value and consequently contributes a higher maintenance levy. Share value in residential properties In the case of residential properties, occupancy is taken into account because it reflects usage directly. Floor area groupings are used to take into account the different number of occupants, who are likely to stay in a unit. It is assumed that units within a larger floor area grouping have more occupants and thus incur a higher proportion of maintenance costs of the common property. The floor area groupings are shown in the table below.
50 sqm and below
51 sqm to 100 sqm
101 sqm to 150 sqm
151 sqm to 200 sqm
*The share value increases by one for every 50 sqm of floor area.
50 sqm = Approx. 538.196 sqft
100 sqm = Approx. 1076.39 sqft
150 sqm = Approx. 1614.59 sqft
200 sqm = Approx. 2152.78 sqft
1. Strata Living in Singapore https://www1.bca.gov.sg/docs/default-source/docs-corp-regulatory/building-maintenance-and-strata-management/strata_living-(1).pdf
HO WEI QUAN
SENIOR MARKETING DIRECTOR
CEA LICENSE: R060379E